ECON 2
Disclaimer: Please refer to your syllabus & instructor for the exact topics covered in your course.
Topic Review Sheets
This document will be added to for the remainder of the quarter.
1: Econ 1 Review
Topics: Opportunity Cost, Perfectly Competitive Markets, Demand/Supply Curves, Demand/Supply Shifters, Market Equilibrium.
Please note that answers can be found on the last pages of the document.
Extra Review Practice Problems
2: GDP
Topics: GDP: “per capita”, Income/Expenditure, Nominal vs Real, Deflator, Year Comparison.
3: Growth
Topics: Capital (Traditional vs Human), Production Function, Vicious vs Virtuous Cycle, Inward vs Outward Oriented policies, Brain Drain, Capital Dilution.
4: Unemployment
Topics: Cyclical vs Natural Rate of Unemployment, Efficiency Wage, Unemployment Rate, Structural Unemployment, Labor-Force Participation Rate, Minimum Wage and Unions.
5: Inflation
Topics: Inflation and the Consumer Price Index (CPI)
6: Consumption and Savings / Investment
Topics: Bonds vs Stocks, Private vs Public Saving, Loanable Funds, Budget Deficit, Interest (Simple/Compounding), Risk Averse, Adverse Selection, Moral Hazard, Efficient Market Hypothesis (EMH).
7: Financial Sector / International Finance
Topics: What is Money?, Types of Money, Federal Reserve System, Monetary Policy, Open Market Operations, T-Account.
8: Business Cycles
Topics:
9: IS-MP (Investment Savings - Monetary Policy)
Topics: Quantity Theory of Money, Money Supply/Demand, Classical Dichotomy, Money Neutrality, Velocity of Money, Hyperinflation, “Inflation Tax," Fisher Effect, Costs of Inflation.
10: Phillips Curve and Inflation
Topics:
11: The Fed Model
Topics:
12: Monetary Policy
Topics:
13: Fiscal Policy
Topics:
14: Aggregate Supply & Demand
Topics: Aggregate Demand, Aggregate Supply, Economic Fluctuation, The Wealth Effect, The Interest Rate Effect, The Exchange Rate Effect, Long Run Aggregate Supply (LRAS), Short Run Aggregate Supply (SRAS).
Practice Exams
Review Sheets
Answers can be found on the last page(s) of the documents.
Tutor-Specific Resources
UCSB CLAS ECON & STATS